Thursday price action continues slide: Brooks

Brooks Price Action Analysis for Thursday, April 10

pending chart 2771

Breakout below trading range on daily so possible gap down tomorrow. Less likely, 60 minute two legged pullback in a bull move, failed breakout below bottom of month long trading range, and then move up to 1900 top of weekly channel. Reasonable to consider buying put spreads for move down to around 1730 bottom of channel within next few months (�short in May and go away�).

  • Thursday, April 10, 2014
  • Bar 1 - Big bear bar, might test bottom of channel, but trading range likely after strong bull yesterday. Weekly tight trading range so might get doji bar on weekly and open of week = pink line = magnet. Good area for puts and put spreads. Green line below = bottom of trading range of past month
  • Bar 2 - Or but big tail, probably trading range so sell above or sellers at the high of the bar and probably scaling in higher
  • Bar 4 - Double top 77, but 2 strong bull bars so buy below or buyers at the low of the bar and probably scaling in lower and below 2. Probably breakout mode, but should get down to trendline below
  • Bar 6 - Two legged pullback in a bull move but small bar compared to 4 5, magnet below. Ok swing but low probability. Breakout sell or short but possible buy below or buyers at the low of the bar and probably scaling in lower
  • Bar 8 - Two legged pullback in a bull move second entry buy but tight trading range, bad for scalping with stop entries unless using swing stop, magnet below so not high enough probability unless swing stop and scale in for scalp
  • Bar 9 - Two legged pullback in a bear move sell or short, bottom of channel target below, but doji so swing or wait. Tight trading range, bad for scalping with stop entries unless using swing stop
  • Bar 11 - Wedge 2 5 but trendline just below. Ok swing buy or long but probably will have to hit trendline before going up. They keep selling bull closes and buying bear closes. Trading range pa
  • Bar 13 - Double top 9, bear channel, ok swing sell or short for possible high of the day, but probably buy below or buyers at the low of the bar and probably scaling in lower at trendline and 10 low
  • Bar 15 - Breakout, always in short
  • Bar 16 - Follow through, probably two legs up but might test 10 low breakout
  • Bar 17 - Parabolic wedge 5 10 but probably sell above or sellers at the high of the bar and probably scaling in higher and two legs down
  • [more Bar-by-Bar Analysis, Daily Webinar and Trading Course info at www.brookspriceaction.com and www.brookstradingcourse.com]
About the Author
Al Brooks

Al Brooks, M.D., is author of the Brooks Trading Course (27 hours of videos at BrooksTradingCourse.com), several books on Price action (Reading Price Charts Bar by Bar: The Technical Analysis of Price Action for the Serious Trader, Wiley, 2009, and the 500,000 word, three-book series, Trading Price Action, Wiley, 2012), and numerous articles in Futures Magazine. He also provides live intraday E-mini price action analysis and free end-of-day analysis on www.brookspriceaction.com.

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